CS FOR SENATE BILL NO. 20(FIN) An Act relating to the Board of Marine Pilots and to marine pilotage; extending the termination date of the Board of Marine Pilots; and providing for an effective date. ZACH WARWICK, STAFF, SENATOR GENE THERRIAULT, stated that under AS 08.03.010(10), the Board of Marine Pilots (BMP) will terminate on June 30, 2003. A report released by the Legislative Budget and Audit (LBA) Committee recommended that the Legislature extend the board's termination date to June 30, 2007, and that HB 32 would do that. Mr. Warwick continued, the regulation and licensing of qualified marine pilots benefits the public's safety and welfare. The steady increase in the tourist passenger ships in recent years has made BMP's role increasingly more important. The board provides reasonable assurance that the individuals licensed to pilot passenger and cargo ships in Alaskan waters are qualified to do so. CAPTAIN DALE COLLINS, PRESIDENT, SOUTHEAST ALASKA PILOT ASSOCIATION, KETCHIKAN, spoke in favor of SB 20. He stated that he had been a pilot in Southeast Alaska for 25 years. He noted that his association has a responsibility to provide pilot service to foreign flagships of 300 gross tons or more in the Dixon entrance to Southeast Alaska. The original pilots act was created in 1970 through the legislature and has been working well ever since. He urged passage of the bill. Representative Foster referenced correspondence from House Speaker Brian Porter and asked what had happened with the exemption request for the private motor yachts. Captain Collins responded that there is interest in providing for those private motor yachts and that they are exempt up to 300 gross tons. He pointed out that concerns have been raised regarding homeland security and that no language has yet been added to address a sunset to the bill. KATE TESAR, LOBBYIST, ALASKA YACHT SERVICES AND PROVISIONING, JUNEAU, commented that she represents a small local Juneau business, which works with yacht management companies throughout the United States, booking large pleasure craft coming to Alaska. She stated that they fully support the Board of Marine Pilots and support the extension of that board. Ms. Tesar addressed recommendation #4 made by the LBA Committee, which calls for the State to implement a waiver system for some large pleasure craft. Ms. Tesar explained that some owners are considering other destinations rather than Alaska because of a law that mandates a marine pilot be aboard certain size yachts the entire time they are in Alaska. In some cases, the cruise time last a number of weeks. Many of the owners position their boats in Alaska during the summer months and then fly their guests and family back and forth. She noted the change to the statute, which would allow vessels up to 200 feet to operate in the Alaskan waters without a pilot. She advised that such a system has been operating in the State of Washington for many years. She referred to an application in member's files from the State of Washington. (Copy on File). Ms. Tesar indicated that the rewrites of the marine pilot laws had been in response to the Exxon Valdez incident. Following that, a rewrite was done in 1995. Prior to 1995, all pleasure craft were exempt from marine piloting. In 1995, a decision was made to mandate pilots for foreign plate vessels over 300 tons. She recalled, at that time, there was a large private research vessel in Alaska raising concerns regarding such activities. It was at that time that the law was changed to mandate a marine pilot be on board of larger vessels. She added that in 1999, there was an extension of the board and that none of the issues regarding marine pilotage had been addressed. Ms. Tesar advised that the issue is an economic development concern. These pleasure craft bring new money into shore side communities. It is estimated that the yachts spend about 30% over the cost of the trip in the port communities. Because of the Gulf circumstances, this summer the United States will be a destination of choice for many of boats. Ms. Tesar referenced the letters of support in member's files from the various communities and their mayors. (Copies on File). She urged that capturing new revenue in these communities be a major consideration. Co-Chair Williams asked if there were any exempt yachts being used. Ms. Tesar responded that all commercially designated vessels are mandated to have pilots on board, previously designated as pleasure craft only. She explained that foreign-hulled pleasure craft up to 300 tons are exempt and that all American vessels are already exempt from marine pilotage. The only ones that must have pilots on board are the foreign plate vessels over 300 tons. Co-Chair Harris asked why the American flagged ships were exempt from the pilotage requirement. Ms. Tesar did not know for sure but speculated that it might have to do with impeding commerce between states and nations. She suggested that the Board of Marine Pilots answer that question. Co- Chair Harris commented that his biggest concern regarding the ships was one of "safety". Representative Stoltze mentioned the Coast Guard waiver for the Canadian vessels. JEFF WHITE, MANAGER, SEADROME MARINE COMPLEX, GOLDBELT CORPORATION, JUNEAU, testified in support of the proposed change to the marine pilotage law concerning foreign flagged yachts. He has observed that vessels become frustrated with current regulations, and then leave for "friendlier ports". This past year, 25% of Goldbelt's moorage business came from yachts and transient vessels. Most travel from the East Coast to visit Alaska, while others are on their maiden voyage after leaving the boat builders in the Puget Sound area. The limited availability of pilots is also problematic for many vessels including yachts with the every-changing schedules. Mr. White suggested that the independent yacht visitors have a comparably greater positive economic impact by spending much time in Alaska, spreading their purchasing power over numerous businesses and communities. Mr. White urged consideration of the exemption to allow the market to reach its potential in Alaska. PETER CHRISTENSEN, MARINE PILOT COORDINATOR, BOARD OF MARINE PILOTS, encouraged the passage of SB 20. He responded to previous questions regarding the United States yachts, indicating that the co-pilotage law code defines the responsibilities for marine pilotage between the states and the federal government. Federal government has the control over the U.S. vessels & yachts and the State has the control over the foreign flagged vessels. Co-Chair Harris asked if a ship were over a certain length, would they then require a pilot. Mr. Christensen suggested that length could be better criterion than gross tonnage. Representative Foster interjected that the tonnage had to be over 300 tons to require a pilot. Co-Chair Harris questioned why the length of the ship would be a factor. Mr. Christensen responded that current statute indicates gross tonnage, which is an old method of measuring ships. It is a method that has many loopholes. He acknowledged that length would be a better way to measure. The Coast Guard establishes its regulations based on the number of passengers on board. He concluded that if the statute should change, it would be more helpful that it move to something more specific such as the length measurement. Co-Chair Harris asked if 100 feet would be a break-off point. Mr. Christensen stated that the Board does not have a position on that. Co-Chair Harris asked if there were situations in which pleasure craft could be allowed to operate in Alaska waters without a pilot and if there were any safety devices required to make it more amenable. Mr. Christensen commented that there could be legal forms regarding the captain's experience and/or that the ship could put up an assurity bond. There are a variety of ways to mitigate these issues. Co-Chair Harris reiterated that his concerns are about the safety and security of the waterways and the vessel while maintaining their privacy. Representative Stoltze interjected that sunsets are a good way to handle those types of concern. Co-Chair Williams noted that CS SB 20 (FIN) would be HELD in Committee for further consideration.